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Marginal Costing
SUBJECT : Management
AUTHOR : G V KESAVA RAO , K YATHIRAJU and G NAVEEN KUMAR
PUBLISHED ON : 29/03/18
NUMBER OF PAGES : ( 76 Pages)
PRICE : Rs 0

The elements of costs can be divided into 􀃀 xed, variable and mixed costs, such mixed costs are called semi–variable costs. It is necessary to segregate the mixed costs into 􀃀 xed and variable costs for managerial decisions. The marginal cost of an item is its variable cost. The marginal production cost of an item is the sum of its direct materials cost, direct labour cost, direct expenses cost (if any) and variable production overhead cost. So as the volume of production and sales increases total variable costs rise proportionately. Fixed costs, in contrast are cost that remain unchanged in a time period, regardless of the volume of production and sale. Marginal production cost is the part of the cost of one unit of production service which would be avoided if that unit were not produced, or which would increase if one extra unit were produced.


 
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